Plain Dealer FileThe state wants the city of Cleveland to stop relying on estimated bills and fix broken water meters. The state auditor has told the Cleveland Division of Water to fix broken meters and stop the rampant use of estimated bills.

More than 8 percent of the division's accounts last year were considered "out of order" due to broken, unreadable or missing meters, the audit said. The number of accounts where actual readings could not be taken rose from 2,080 in 2003 to 34,915 in 2008, according to the report.

The audit, released last week, noted only a slight reduction in these accounts, meaning some customers received estimated bills rather than true readings for as many as six years.

"Water customers receiving estimated bills have been paying a lot more or a lot less than they should have," said Steve Faulkner, the auditor's deputy press secretary. "There's no way to tell who's the winner or loser -- the customers or the city."

Other complaints made to the newspaper included customer-service issues such as long waits on phone lines and rude treatment. Cleveland, which provides water to 1.4 million people in five counties, began addressing these concerns months ago in response to the stories.

"We are and have been working on all those things," said Barry Withers, interim director of the Cleveland Department of Public Utilities.

Withers on Tuesday said he was not sure if the numbers used by the state are entirely accurate. Some of the "out-of-order" accounts could have been for foreclosed homes, homes where meters were ripped out by vandals or residences where occupants moved out, he said.

Faulkner called the large number of broken meters and estimated bills "a very severe situation."

The audit states the division "must place a high priority on resolving issues associated with accounts that have not had a reliable meter reading." The report said it was imperative that actual readings occur at least once a year since water costs and sewer rates (based on water consumption) change frequently.

Faulkner said auditors had never before looked at meter issues and estimated billing in the division. Auditors intend to monitor the division's progress on meeting the demands and report on progress as part of next year's review.

Withers said the water division has set up an executive oversight committee and three special project teams to review meter reading, billing and meter repair procedures.

A $29 million billing system that went online this fall will help the division determine the number of broken meters, he said. The system has prompted more calls and longer waiting times, he said, but the division is working to better answer inquiries.

The division is mapping plans for an automatic meter-reading system that could cost $80 million. Water Commissioner J. Christopher Nielson said implementation could begin by August 2010.

Meters that are eight years or older will be replaced during installation of the new system, he said.

Meanwhile, Withers said he has been meeting with his project teams and should have recommendations for more service improvements sometime next month.

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